BANKING & INVESTING FINAL

It is free to buy stocks

• True
• False

People who own stocks are guaranteed a return on the money they have invested in stocks.

• TRUE
• FALSE

Stocks represent ownership in a corporation.

• TRUE
• FALSE

Stockholders can reduce the risk on their stock investment by diversifying their portfolios.

• TRUE
• FALSE

When the market turns upward and prices are increasing

• Bear
• Bull
• No such term
• Bronco

When the market takes a downhill turn and prices are decreasing

• Bull
• Bear
• No such term
• Bronco

The total number of shares traded in a given day.

• beta
• profit
• loss
• volume

A sum of money paid to shareholders of a corporation out of its earnings.

• index
• dividend
• profit
• invest

The total holdings of stock by a financial institution or a private investor.

• index
• portfolio
• stock market
• industry

The DOW Jones Industrial Average is an index of 30 American companies.  Why is the DOW Jones Industrial Average important?

• It tells Americans how much debt the country is in.
• It helps economists predict when a stock market crash will happen.
• It tells Americans how many jobs are out there.
• It provides a snapshot of how the stock market and the US economy is doing.